METROPOLITAN BANK

With deregulation of consumer banking in the early 1970’s, commercial banking became a highly profitable business.

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Metropolitan Bank

Q1. COMPARE THE RETAIL BANKING GROUP IN METROPOLITAN BANK WITH THE CORRESPONDING ORGANIZATION IN CHEMICAL BANK.

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CHEMICAL BANK

One of the largest banks in US in 1960

Branch Offices operated as Independent Banks

Control Division – Responsible for Design and operating of a planning & control system

Quarterly Comparative Earnings Statement - Evaluation of branch performance

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In 1992, the Retail Banking Group generated approximately 32% of the revenues and net income of Metropolitan Bank.

For better assessment of the profitability of customer & products, the organization developed : Mission Strategy and Business synergies/linkages.

The Retail Banking group was organized around three major business lines which catered to various classes of customer:

• Regional Consumers• Commercial & Professional Business• National Business

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Q2. DO YOU THINK THE ORGANIZATION STRUCTURE & CONTROL SYSTEMS ARE CONSISTENT WITH THE BANK’S STRATEGIES?

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Retail Bank Mission :

Superior Customer Focus & Responsiveness

Performance Improvement Wheel

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RBG Major Business Lines Local Market Group

Local Market Development Product Management Sales & Service Support Functions

Retail Card Services Business Group Provide strategic blueprints Dedicated attention to the big picture Expand to a broader view of Purchase/Payment System

products Increased project management & implementation support

National Consumer Business Group Mortgage franchise Guaranteed student loan National consumer finance Consumer asset group 8

Q3. WHAT CHANGES TO THE ORGANIZATION STRUCTURE & CONTROL SYSTEMS WOULD YOU RECOMMEND FOR METROPOLITAN BANK ?

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Performance linked incentives

Better services to internal customer

Better goal setting procedures

Understanding the target audience

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